Monday, 2 May 2016

News Release: BADEA Grants $50 Million Line Of Credit To Afreximbank.

Afreximbank
President Dr. Benedict Oramah (left) and Dr. Sidi Ould Tah, Director General of
BADEA exchange documents following the signing ceremony in Khartoum.

The
Arab Bank for Economic Development in Africa (BADEA) and the African
Export-Import Bank (Afreximbank) have signed an agreement for a $50 million
line of credit granted to Afreximbank by BADEA for the financing of trade
operations between Arab and African countries aimed at guaranteeing regular
flows of goods and services vital for economic growth.

The
line of credit agreement, signed in Khartoum on 28 April by Dr. Sidi Ould Tah,
Director General of BADEA, and Dr. Benedict Oramah, President of Afreximbank,
was one of two cooperation instruments entered into by the two institutions
during a visit to the BADEA headquarters by an Afreximbank delegation led by
Dr. Oramah. The second was a memorandum of understanding providing a framework
for cooperation in promoting economic and social development of African
countries through the funding of private sector projects and trade finance
operations.

Speaking
after the signing of the two documents, Dr. Ould Tah said that the line of
credit, which would finance Arab exports to Afreximbank member states eligible
for BADEA funding, marked the first step in cooperation between the two banks
in the area of trade finance operations.

According
to BADEA, the line of credit, which is part of its programme for financing
foreign trade, will target such sectors as energy, industry and agriculture
which contribute to sustainable development, improve living conditions and
alleviate poverty.

In
his statement, Afreximbank President Dr. Oramah said that the signing of the
line of credit demonstrated BADEA’s commitment to working with Afreximbank to
develop the African continent and promote Arab-Africa trade.

It
also demonstrated that BADEA identified with Afreximbank’s efforts to assist
African countries to manage the consequence of commodity price shocks, he
continued, adding that Afreximbank, working with BADEA, expected to create
instruments and programmes to accelerate Arab-Africa trade and investment.

Dr.
Oramah said that Afreximbank saw opportunity to work with BADEA to expand its
$500 million Egypt-Africa Trade Promotion Programme and to replicate it in
other Arab countries. It also hoped to match capital-surplus Arab economies
with resource-endowed African countries in order to enable the Arab world and
Africa expand their influence and relevance in the global economy.